Property tycoon's £2.9bn Spirit bid

PROPERTY tycoon Robert Tchenguiz has emerged as favourite to win the £3bn race to buy High Street pubs group Spirit. A deal could be signed as early as this week. Spirit includes such names as the Chef & Brewer and John Barras chains.

Tchenguiz is believed to have bid up to £2.9bn through his R20 investment vehicle, topping offers from quoted pubs group Punch Taverns, the billionaire Barclay Brothers, owners of The Daily Telegraph, and Clearbrook Capital, the firm founded by former WestLB banker Robin Saunders.

Punch triggered the auction for the 2,000 Spirit outlets when it approached owners Merrill Lynch, the investment bank, and private equity firms Texas Pacific Group, Blackstone and CVC Capital Partners in June. It is understood to have bid between £2.6bn and £2.7bn, but has declined to raise its offer.

Punch was viewed as the obvious buyer for the business, but while it was regarded as more able to complete a quick deal, it was bound by shareholders not to overpay. Though sources insist Spirit is performing strongly and could continue alone, a takeover is now looking inevitable. If Tchenguiz does close the deal, he will have a busy Christmas as he has also appointed investment bank Citigroup to look at options for his £200m Scottish distillery Invergordon, part of the Whyte & Mackay whisky company.

It is thought that Citigroup has been asked to test the market for buyers or find potential acquisitions that could be put together with Invergordon.